One of life’s biggest decisions involves your home – and the most important question might have little to do with cost, the real estate market, interest rates or location.

The first step in the process is deciding whether you want to buy a home or rent one. It may sound simple enough, but numerous factors ought to be considered before making further arrangements.

We at Golden Ocala Golf & Equestrian Club will help guide you through the decision-making process to enable you to make the wisest choice suited for your particular circumstances.

Bankrate.com suggests those preparing to make that decision should first examine their finances. A mortgage calculator helps you determine the best path.

For those leaning toward buying, costs typically vary more widely than for renters, according to the New York Times.

The first question to consider if you plan on paying a mortgage is how much can you comfortably afford monthly? Couple that question with how long do you plan on staying?

Low interest rates and high rents have compelled some people – especially younger ones – to reconsider their initial plans. Buying a home has become increasingly attractive as a long-range investment.

Let’s examine the advantages and disadvantages of renting.

What’s good?

• No maintenance: Dishwasher breaks. No need to head to the appliance store. Call the superintendent.
• Easy traveling: If you get another job and want to move, renting is the way to go. It is much easier to get out of a lease than it is sell your home.
• Losing value: Property values have generally been on the rise for the last 50 years, but there’s no guarantee the market will continue in that direction.

What’s not so good?

• Rent can rise: At the end of your lease, your landlord may decide it’s time for an increase. In many areas, the trend has been on the upswing.
• No equity: As a tenant, your rent gives you a place to stay. But your investment never increases in value.
• No tax benefits: Homeowners can deduct mortgage interest payments on their tax forms. Renters don’t share that option.
• No decoration changes: You have to get your landlord’s permission to paint your home or apartment or upgrade your appliances.

What about buying? What are the advantages and disadvantages?

What’s good?

• Building equity: The real estate has been good with typical rises in property value of 4 to 6 percent per year, according to moneycrashers.com. If the market is steady, you build equity merely by paying on your investment.
• Tax benefits: This is the flip side of the renter’s disadvantage. Homeowners can deduct mortgage interest payments from their taxes.
• Cost stability: Your monthly mortgage won’t go up. With a fixed-rate mortgage, your payments remain the same. (Your insurance and property taxes, however, may rise.)
• Investment property: If you do decide to move, you can make your house available as rental property and generate some extra income.
• Community involvement: Homeowners tend to get more involved in their communities compared to renters. You’re investing in your neighborhood as well as your home.
• Decorative freedom: If you want to paint your house, change appliances, buy new furniture, you can do it anytime. No need to ask anyone for permission.

What’s not so good?

• You pay for repairs: Something breaks, you can’t call the superintendent.
• Moving isn’t always easy: Your home is not a liquid asset. Selling your home depends on the real estate market.
• Pay the taxes: While some states restrict how much property taxes can go up annually, you still have to pay – one way or another.
• Home values may drop. While home buying has traditionally been a good investment, there’s no guarantee it will continue rising.
• The down payment: The initial down payment, which can be sizable, may make for tight budgeting in the beginning.
• Getting insurance: Renters have the option of getting insurance. Lenders don’t give homeowners that option. You have to pay your insurance your premium, usually on top of your mortgage payment.

Golden Ocala Golf and Equestrian Club is a gated community with ten unique neighborhoods. Each neighborhood is designed with distinctive options to suit the individual desires of residents: It is the luxury of your choice, by builders using superior materials for individual lifestyles. Call us today at 352-369-6969.

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